Last Week in the News
 

Existing home sales rose 7.4% in November to a seasonally adjusted annual rate of 6.54 million units from 6.09 million units in October. On a year-over-year basis, sales of existing homes increased 44%, the largest gain on record. The inventory of unsold homes on the market fell 1.3% to 3.52 million, a 6.5-month supply at the current sales pace, and the lowest level since December 2006.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 2.2% in the third quarter of 2009. This was the final revision of the third-quarter report and was lower than the previous estimate of 2.8%.

The Commerce Department reported that consumer spending rose 0.5% in November, slightly less than economists had anticipated. Personal income increased 0.4%, the fastest pace in six months.

The Reuters/University of Michigan consumer sentiment index for December’s final reading rose to 72.5 from November's final reading of 67.4. Economists had forecast a December reading of 73.8.

The Commerce Department reported new home sales fell 11% in November to a seasonally adjusted annual rate of 355,000 from a downwardly revised rate of 400,000 in October. Economists had expected a pace of 440,000.

Orders for durable goods — items expected to last three or more years — rose 0.2% in November after a 0.6% decline in October. Excluding volatile transportation-related goods, orders posted a sizeable monthly gain of 2%.

Initial claims for unemployment benefits fell by 28,000 to 452,000 in the week ending December 19. Continuing claims for the week ending December 12 fell by 127,000 to 5.08 million.

Upcoming on the economic calendar are reports on the housing price index and consumer confidence on December 29.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Last Week in the News

The Commerce Department reported that the combined construction of new single-family homes and apartments in November rose 8.9% to a seasonally adjusted annual rate of 574,000 units. Applications for new building permits, seen as an indicator of future activity, rose 6%, the highest level since November 2008.

The producer price index, which tracks wholesale prices, rose 1.8% in November, following a 0.3% increase in October. Economists had expected a gain of 0.8%.

Industrial production at the nation’s factories, mines and utilities rose 0.8% in November, following a revised 0.1% increase in October. The overall factory-operating rate rose to 71.3% of capacity in November from 70.6% in October.

The National Association of Home Builders/Wells Fargo housing market index fell one point in December to 16. An index reading below 50 indicates negative sentiment about the housing market.

The Labor Department reported consumer prices rose 0.4% in November. In a positive sign, the core index for inflation, which excludes the volatile categories of food and energy costs, remained unchanged after 10 consecutive monthly increases.

Initial claims for unemployment benefits rose by 7,000 to 480,000 in the week ending December 12. Continuing claims for the week ending December 5 rose by 5,000 to 5.186 million.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose a better-than-expected 0.9% in November after a 0.3% gain in October. It was the eighth straight monthly increase.

Upcoming on the economic calendar are reports on existing home sales on December 22, new home sales on December 23 and durable goods orders on December 24.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Last Week in the News

Retail sales increased 1.3% in November, following a downwardly revised 1.1% increase in October. Excluding automobiles, retail sales rose 1.2%, the largest gain since January. Sales of building materials increased 1.5%, the biggest gain since April 2008.

According to the Federal Reserve, consumer credit debt fell in October by $3.51 billion, an annual rate of 1.7%. Economists had forecast that consumer debt would drop $9.3 billion. That’s a sign the financial crisis is easing as more households cautiously increase their purchasing activity.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending December 4 rose 8.5% to 665.6. Purchase volume increased 4% to 241.5. Refinancing applications gained 11.1% to 3,185.9.

The Commerce Department said wholesalers increased their inventories by 0.3% in October. It was the first gain since August 2008, ending a record stretch of 13 monthly declines. Economists had anticipated a 0.5% drop. Meanwhile, sales at the wholesale level rose 1.2% in October, marking the seventh straight monthly gain.

The Commerce Department reported that the trade deficit shrank 7.6% to $32.9 billion in October from a revised $35.7 billion in September. Economists had expected a trade deficit to widen to $36.8 billion. The growth in U.S. exports is an indication the global economy is beginning to rebound.

Initial claims for unemployment benefits unexpectedly rose by 17,000 to 474,000 in the week ending December 5. Continuing claims for the week ending November 28 fell by 303,000 to 5.157 million.

The Reuters/University of Michigan consumer sentiment index for December rose to 73.4 from 67.4 in November. Economists had forecast a reading of 68.5.

Upcoming on the economic calendar are reports on the housing market index on December 15, housing starts on December 16 and the index of leading economic indicators on December 17.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Last Week in the News

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The Labor Department reported that the unemployment rate fell to 10% in November from 10.2% in October. Employers cut 11,000 jobs, the smallest monthly loss since the recession began in December 2007. Payrolls were forecast to decline by 125,000.

The Institute for Supply Management reported the monthly index of manufacturing activity fell to 53.6 in November after reaching a three-year high of 55.7 in October. However, the new orders component rose to 60.3 from 58.5. A reading above 50 signals expansion.

The Commerce Department reported total construction spending was unchanged in October after dropping 1.6% in September. Economists had expected a decrease of 0.4%. Private residential activity rose 4.4%.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 3.7% to 114.1 in October, following a 6.1% increase in September. It was the ninth consecutive monthly increase. On a year-over-year basis, pending home sales are up 31.8%.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending November 27 rose 2.1% to 613.7. Purchase volume increased 4.1% to 232.3. Refinancing applications gained 1.7% to 2866.4.

The Institute for Supply Management reported the monthly index of non-manufacturing activity was 48.7 in November, down from 50.6 in October. A reading above 50 signals expansion.

The Labor Department reported productivity rose at an annual rate of 8.1% in the third quarter, the largest gain in six years. Labor costs fell at an annual rate of 2.5%.

The Commerce Department reported factory orders rose 0.6% in October, following an upwardly revised 1.6% gain in September. It was the sixth gain in the past seven months.

Upcoming on the economic calendar are reports on wholesale trade on December 9 and retail sales on December 11.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132